The domestic printing and dyeing market is relatively concentrated. Compared with the printing and dyeing in Jiangsu and Zhejiang, the dyeing factories in Guangdong are mainly engaged in the processing of knitted fabrics, and the amount of reactive dyes is relatively large. However, since April, the market volume of printing and dyeing factories has shrunk. The reactive dye market is still tepid during the peak consumption season. In fact, since mid-March, reactive dyes have been in a stable and volatile situation.
As of April 15, taking reactive black WNN as an example, the market transaction price is between 21,000 and 22,000 yuan (ton price, the same below). “Due to the early release of positive demand and insufficient follow-up of downstream orders, the shipment situation of reactive dye companies is not good. At the same time, the market for raw material para-ester and H acid is weak, and the cost support of reactive dyes is insufficient. It is expected that the short-term market will mainly consolidate at a low level.” Baichuan Yingfu dye analyst Zhang Yue and other market analysts believe.
The dye market is digested in advance
The peak season for reactive dye demand is from March to June every year, but this year The market did not show peak season conditions, mainly because the positive demand had been released in advance.
“During the Spring Festival, the prices of bulk commodities increased one after another, and downstream stocks were prepared in advance. After the Spring Festival, most printing and dyeing companies started work earlier than in previous years. In addition, the export market was strong, and downstream orders were booming. The warehouse volume has surged, reaching about 1.6 million meters per day, and the demand for reactive dyes has also exploded.” Zhang Yue analyzed.
Customs statistics show that from January to March, my country exported US$31.8053 billion of textile yarn, fabrics and products, a year-on-year increase of 40.3%, of which exports in March were US$9.2528 billion; Clothing and clothing accessories were US$33.2953 billion, a year-on-year increase of 47.7%.
“But recently, orders from printing and dyeing companies have begun to decrease, and the daily warehouse volume has dropped significantly to 600,000 to 700,000 meters, less than half of the previous period. As the backlog of orders from the year before continued to increase, After the release, the inventory of printing and dyeing factories may decline again. End customers are unable to accept the high price of raw materials in the current market, which has also prompted many customers to cancel orders, so it is difficult to drive an increase in demand for reactive dyes.” said Gu Shujing, a dye analyst at Zhuochuang Information .
Lin Lin, vice president and secretary-general of the China Printing and Dyeing Industry Association, said in the live broadcast room of the 2021 Colorful Cloud Second International Dyes and Auxiliaries Online Exhibition that printing and dyeing in the first half of 2021 Industry production and operation are expected to return to pre-epidemic levels, but corporate profitability may still be in a low range. At the same time, as the external environment remains complex, foreign trade will still be under certain pressure, and the demand for reactive dyes is expected to decrease.
Stable supply
“my country’s large-scale reactive dye manufacturers include Zhejiang Longsheng, Jiangsu Golden Pheasant, Gorgeous dyes, etc. At present, the main manufacturers are operating stably, there is no maintenance plan, and the market supply is generally stable. At the same time, due to the large number of early orders from manufacturers, the inventory accumulation is not very large.” Zhang Yue said.
In terms of new production capacity, Gu Shujing introduced that the Runtu reactive dye relocation and expansion project is still in trial operation, and Jiangsu Jihua’s 20,000 tons/year H acid project has completed the approval and acceptance of production resumption. , but there has been no restart for the time being, and the supply remains stable.
From the perspective of supply pattern, the total production capacity of the reactive dye industry is 455,000 tons/year, and the top three companies in the industry account for 50.6% of the production capacity. The industry concentration is a bit low compared to disperse dyes. , leading companies have relatively insufficient market control capabilities. Overall, the reactive dye industry is currently operating stably, and the short-term market will remain stable.
Insufficient raw material support
H acid and para-ester are the main raw materials for the production of reactive dyes. At present, the markets of these two raw materials are mainly weak, and the cost support of reactive dyes is insufficient.
“The current ex-factory quotation of para-ester manufacturers is 35,000 yuan, which is the same as last week, which is difficult to bring cost support to the reactive dye market.” Zhang Yue said. On April 16, the market for para-ester raw material ethylene oxide maintained stable operation, and the average ex-factory price in various places was stable at 8,400 yuan. The recent ethylene oxide market situation has been poor, and it is expected that regional profit-sharing operations are inevitable, which has caused the para-ester market to lose cost support.
“From the perspective of the H acid market, another raw material for reactive dyes, the price of industrial naphthalene, the raw material for reactive dyes, was low in the early stage, and downstream demand was limited, so the price of H acid weakened. The average price of H-acid market last week was 34,500 yuan, which was the same as the previous week. In the later stage, the supply of industrial naphthalene is loose, and the market is expected to remain weak and volatile. With insufficient support from the H-acid raw material end and average downstream demand, the H-acid market may continue Weak adjustment.” Gu Shujing said. </p
